President Jokowi said that the change scheme for the price of Pertalite concerned the livelihoods of several people, so it would be calculated and decided prudently.
"This concerns the lives of many people, so everything must be decided carefully. The impact is calculated. The change in the price of Pertalite should not reduce the people's purchasing power and household consumption," Jokowi stated after attending an event of the Indonesian Chamber of Commerce and Industry (Kadin) at Taman Mini Indonesia Indah, Jakarta, on Tuesday,
He said the government will also mitigate the impact of changes in Pertalite prices on the national inflation rate and economic growth.
Based on data from Statistics Indonesia (BPS), Indonesia recorded an annual inflation of up to 4.94 percent (year on year/yoy) in July 2022 or the highest since October 2015. However, in the second quarter of 2022, Indonesia's economic growth managed to record a positive trend at 5.44 percent (yoy).
The head of state confirmed to have instructed his staff to carefully and accurately calculate the planned price change for Pertalite before making a decision.
"I have told to count correctly before it was decided," he stated.
Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan earlier spoke of the government formulating a price adjustment scheme to reduce the burden of fuel subsidies and compensation in the state budget.
Pandjaitan noted in a statement here on Sunday that the high world crude oil prices had pushed up the gap between the economic price and the selling price of Pertalite and diesel fuel in addition to having an impact on increasing subsidies and energy compensation.
To date, the state budget covered energy subsidies and compensation of Rp502 trillion. Without any policy adjustments, this figure could increase to more than Rp550 trillion by the end of the year.
"The government is still calculating several scenarios for adjusting subsidies and energy compensation by taking into account the impact on the community," he remarked.
However, he emphasized that the price of fuel in Indonesia is relatively cheaper than that in most countries in the world.
Pandjaitan said that the government is also conducting scenario simulation of the volume limitation.
"The government will continue to encourage the use of the MyPertamina application to obtain accurate data before the restriction is applied," he said.
However, he ensured that the government would consider this plan very carefully.
Several factors, such as the inflation rate, fiscal conditions, as well as economic recovery, would need to be considered before making changes in the policies of energy subsidy and compensation.
Maintaining the stability of the country is crucial in the midst of global uncertainty.
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Translator: Indra AP, Azis Kurmala
Editor: Rahmad Nasution
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